Texhoma: Buck Snag's Second Well Logs Three Gas Pays

Texhoma Energy, Inc. said that the operator, Sunray Operating Company LLC, has completed drilling of the Schiurring No. 2 well at the Buck Snag prospect in Colorado County, Texas. The well reached a total depth of 4,406 feet and logged apparent gas pays in three reservoirs. Casing has been set and cemented and the completion of the well as a dual-zone gas producer will commence the week of December 11, 2006.

The so called 3,800 ft-sand appears productive from 3,812 ft to 3,827 ft. A formation test recovered 37 cubic feet of gas and cores further confirmed the presence of gas.

The "3,500 ft-sand" appears productive from 3,525 ft to 3,530 ft. The formation test at 3526 ft recovered 21 cu ft of gas and core samples at this depth further confirmed the presence of gas.

The "2,000 ft-sand" appears productive from 2,035 ft to 2,040 ft and does not appear to be associated with free water despite the recovery of some water on a formation test at 2,035 ft that recovered 11 cubic feet of gas.

Texhoma has a 12.5% back-in right into the well after payout that can be anticipated as early as six months from commencement of production.


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